Your estimated Capitalization Rate would be about 6.7%.Make sure that you have sufficient cash reserves for unexpected repairs and expenses.Make sure that each month you deduct the following expenses from your rent and save them for future payments: (1) real property taxes, (2) replacement reserve and (3) insurance reserve.For your information, the 50% rule, which is generally considered to be fairly close to actual expenses, states that …50% of your gross rents will be taken up by expenses... property tax insurance vacancy property management maintenance capital repairs legals and accounting, etc.From the remaining 50% you service your debt, if any, and the remaining is your profit.

That improvement project is probably long overdue but whether or not it raises values remains to be seen.

Since he broke the lease, are we still obligated to send him the remaining amount of the security deposit and a letter confirming our intentions?

She's gotten to know the both of us pretty well, but my best friend remains the main point of contact for the deal.

Watch out for other  gov't liens, code violations, property taxes, and recorded/unrecorded HOA debts, as these all remain with the property.

Your comments are exactly why people remain hostile.

The numbers have held steady for the past few years and should remain relatively the same.  

The remaining $10,000 would be subject to long term capital gains tax, currently 15%.  

In most cases, when the tenant receives his check for what remains of his safety deposit along with a statement explaining in detail where that money went and pictures of the damage he caused,  it is left at that.

(Please correct me if I am missing something here.)Scenario 1: Financed PurchaseIf you put 20% down and financed the remaining 140k at 4% and factored in 1% property taxes your monthly payment would be $814.21.